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Thursday, December 6, 2012

The Dow Jones and Stock Market were higher on Thursday. Will the stock market go up or down on Friday? Keep tabs on the stock market futures which will predict the open on Friday. If you are a stock trader or investor, check out my stock picks group. We are making some big trades in there right now. Sign in and sign up.

The Dow Jones Industrial Average closed at 13074on 12/6/12, as the stock market rallied after Apple (AAPL) stock tanked and then reversed higher. The fiscal cliff is just 25 days away now and so far we haven't reached an agreement. All eyes will be on the jobs report tomorrow.

Shares of Apple (AAPL) rallied on Thursday after the stock dropped below $519. AAPL reversed $34 high before settling in the $540's for most of the afternoon. Apple (AAPL) is the subject of profit taking due to the fiscal cliff. A lot of long term investors are locking in gains before their tax rate spikes in 2013. Apple (AAPL) will have support at $519 and a close below that level would be bearish.

In my opinion, you can throw all the bad news you want at Apple (AAPL) but the stock is trading at just 12 times trailing earnings and 9.5 times 2013 earnings. Wall St is now pricing AAPL at an absurdly cheap valuation. The company pays a 2% dividend and has $122 billion in cash. Buy with confidence below $550.

Below is a list of stocks to buy on Friday. These stocks are active and have the potential to break out this week.

Zynga (ZNGA) - Zynga (ZNGA) surged again on Thursday after the company filed for a gaming license in Nevada. ZNGA continues to be a strong buy below $2.30 and has the chance to rally into the $3's in 2013. Resistance is now located at $2.55 & $2.67.

Apple (AAPL) - Apple (AAPL) stock bounced off $519 and rallied to $553 on Thursday. Apple (AAPL) is a strong buy below $500 now. Support is located at $519 and $506, resistance is located at $555. The good news is that at 12 times trailing earnings, all of the bad news is already priced in. I own Apple (AAPL) in my trading account and long term account.

Research in Motion (RIMM) - Shares of Research in Motion (RIMM) rallied on an upgrade by Goldman Sachs last week. RIMM will have resistance up at $12.30 this week.

Nokia Corporation (NOK) - Shares of Nokia Corporation (NOK) topped out at $3.90 on Thursday and are now dropping. NOK is a buy below $3.20 on a pullback.